LLQP Accident & Sickness · Component 2.1 · 30% of the exam
Employment insurance sickness benefits differ from a group short-term disability plan because they are:
- Paid by the federal program to eligible workers, at a capped rate for a limited number of weeks
- BNon-taxable, whereas group short-term disability benefits are always taxed as income
- CAdministered by the employer, whereas group benefits are administered by an insurer
- DPayable for the full duration of the illness, whereas group plans expire after a set number of weeks
Correct answer: A) Paid by the federal program to eligible workers, at a capped rate for a limited number of weeks
Employment insurance sickness benefits are a short, capped federal layer for insured workers, which is why employers who provide their own short-term plan can qualify for a premium reduction.
Why the other options are wrong
- BEmployment insurance benefits are taxable, and group benefit taxation depends on who pays the premium.
- CEmployment insurance is administered federally, not by the employer.
- DThe employment insurance benefit is time-limited and expires well before many illnesses resolve.
Exam tip
Employment insurance sickness is short, capped and federal.
Common mistake
Treating employment insurance sickness benefits as long-term coverage.
What this tests
CISRO competency component 2.1 — Analyze the available products that meet the client's needs — which is weighted at 30% of the Accident & Sickness module. Written against the published curriculum.
More from component 2
- A group benefits booklet lists AD&D coverage alongside life and LTD. The AD&D benefit pays:
- A hospital indemnity (hospital cash) policy pays:
- Employment Insurance sickness benefits are available to:
- Which government program coordinates with an individual DI policy through a possible offset AND also affects the definition of insurable income?
- A group plan's 'eligibility waiting period' (probationary period) is:
- A CI policy that is 'convertible' allows the insured to:
Practice the whole Accident & Sickness module
Timed sets weighted like the exam, and review of every question you miss. Free to start.